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AEO accreditation process relaxed for MSME exporters

Updated: Jan 07, 2021 08:43:15am
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AEO accreditation process relaxed for MSME exporters

New Delhi, Jan 7 (KNN) After examining the difficulties faced by Micro, Small and Medium Enterprises (MSMEs) while applying for Authorised Economic Operator (AEO) accreditation, the Central Board of Indirect Taxation & Customs (CBIC) has eased the custom compliance and security requirements involved in the process.

“The relaxation has been carried out to ensure that the MSMEs are facilitated through rationalized compliance requirements and minimum but effective security requirements,” said a circular dated December 15th which was issued by CBIC’s Directorate of International Customs (DIC).

The relaxations for AEO accreditation for MSMEs included first, relaxing the eligibility requirement of handling a minimum of 25 documents during the last financial year to 10 documents. However, it is subject to handling at least five documents in each half-year period of the preceding financial year. Secondly, the requirement to have “business activities for at least three financial years preceding the date of application” has been relaxed to two financial years and the third, the qualifying period for legal and financial compliance has been reduced from the “last three financial years” to the last two financial years.

Also, the time limit for processing of T1 and T2 AEO applications for MSMEs has been reduced to 15 working days from one month and three months from six months respectively.

''The relaxations will apply to MSMEs who have “a valid MSME certificate from the line-ministry. Further, the approved MSME must ensure their continuous MSME status during the validity of its AEO certification, if granted,” CBIC added.

AEO is a programme under the aegis of the World Customs Organization (WCO) SAFE Framework of Standards to secure and facilitate Global Trade. It enables Indian Customs to enhance and streamline cargo security through close cooperation with the principle stakeholders of the international supply chain viz.

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